Stripe Expands in the UK with New Payment and Financing Tools

Stripe is reinforcing its presence in the UK by opening a flagship office in London and launching innovative payment and financing solutions for small businesses, as outlined in Finextra News.

The UK is Stripe’s second-largest market, with around 600 new businesses joining the platform daily. These businesses will be the first to use Stripe’s Open-Banking-powered payment method, Pay by Bank, which offers a low-cost, real-time way for consumers to pay directly from their bank accounts.

Additionally, UK businesses using Stripe can now access flexible financing through Stripe Capital. This product leverages a company’s transaction and business history to qualify them for financing proactively, with funds deposited the next business day and repayments tied to the business’s earnings.

Only 50% of bank loan applications by UK small businesses were successful last year, down from 80% in 2018, according to Stripe. In the US, businesses that received financing from Stripe Capital grew their revenue 114% faster than their peers.

Later this year, UK marketplaces and platforms using Stripe Connect will also be able to offer financing to their users through Stripe Capital.

John Collison, co-founder of Stripe, stated, «The payments tools and financing options we’re launching today will help money move around the economy faster and make it easier for businesses to invest when they see an opportunity to grow.»

This week, Stripe also opened a new London office at 201 Bishopsgate, housing its growing teams in engineering, sales, partnerships, and operations. Collison added, “The UK’s talent, infrastructure, and financial centre make it an excellent place to build Stripe from, but that’s only half the story. We’re also seeing huge growth amongst UK businesses who are excited to modernise their financial systems and expand globally. That’s what gives us the conviction that now is the time to double down in the UK.”